Saudi Arabia Construction Market to Hit USD 135.6 Billion by 2033 - IMARC Group

Saudi Arabia Construction Market Overview

Market Size in 2024 : USD 97.8 Billion

Market Size in 2033: USD 135.6 Billion

Market Growth Rate 2025-2033: 3.7%

According to IMARC Group's latest research publication,"Saudi Arabia Construction Market Size, Share, Trends and Forecast by Sector and Region, 2025-2033", The Saudi Arabia construction market size was valued at USD 97.8 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 135.6 Billion by 2033, exhibiting a CAGR of 3.7% from 2025-2033.

Download a sample PDF of this report: https://www.imarcgroup.com/saudi-arabia-construction-market/requestsample

Growth Factors in the Saudi Arabia Construction Market
Vision 2030 and Mega-Projects

By diversifying the economy and reducing reliance on oil, Saudi Arabia's Vision 2030 is a game-changing initiative propelling the construction industry. The need for creative construction is being fueled by mega-projects like the Red Sea Project, a luxury travel destination, and NEOM, a futuristic city with smart technologies. These initiatives increase economic activity by drawing in foreign contractors and generating employment. One example of sustainable urban planning is NEOM's The Line, a 170-kilometer linear city that calls for cutting-edge building methods. The government's dedication to these bold initiatives guarantees a consistent flow of opportunities, establishing the building industry as a pillar of economic expansion.

Urbanization and Population Growth

The demand for construction in Saudi Arabia is primarily driven by the country's rapidly increasing population and urbanization. In order to house millions of people, cities like Riyadh and Jeddah are growing, requiring infrastructure, business, and residential projects. One example of efforts to control urban growth is the extensive public transportation system known as the Riyadh Metro. The growing demand for affordable housing is being addressed by housing initiatives like the Ministry of Municipal and Rural Affairs' plan to construct 240,000 units. Together with government incentives for real estate investment, this demographic shift keeps construction activity going, giving suppliers and developers the chance to meet the demands of a country that is becoming more urbanized.

Government Investment and Public-Private Partnerships

Through infrastructure and tourism projects, the Public Investment Fund (PIF) supports significant government investment that drives the growth of construction. The PIF increases the economic impact of the sector by funding giga-projects like the entertainment city of Qiddiya. PPPs, or public-private partnerships, are becoming more and more important because they allow private companies to work together on major projects. For instance, the Royal Commission for Riyadh City announced the Riyadh road projects, which entail the delivery of vital infrastructure by private contractors. Through the use of private expertise and less financial strain on the government, these collaborations guarantee effective project execution and promote long-term growth in the construction industry.

Key Trends in the Saudi Arabia Construction Market
Sustainable and Green Building Practices

Sustainability is reshaping the construction landscape in Saudi Arabia which aligns with international green goals. In Saudi Arabia, green building standards or standards for sustainability, such as LEED certification, are becoming more prevalent due to the development of many projects like NEOM, which prides itself on being a renewable energy based project that utilized environmentally friendly materials. As seen in projects like the residential community of SEDRA by ROSHN, solar panels are becoming a common element to installed in new residential construction. In addition, Saudi Arabia regulations enforce energy-efficient designs and minimize environmental impact. If contractors adopt sustainable practices such as recycling construction waste, they have a competitive advantage. Sustainability not only meets regulatory requirements but also attracts and satisfies eco-friendly investors, which will redefine how we approach growth and development.

Technological Advancements in Construction

The latest technological trends are bringing exciting change to construction in Saudi Arabia. Building Information Modeling (BIM) offers many advantages to overall project execution, including for the Riyadh Metro project, where digital and visual planning facilitate cost savings and project delays. Drones and other digital technologies are improving site monitoring and safety, while 3D printing is being assessed by the construction industry as an alternative to traditional means of construction that may be completed quickly. The NEOM development entity has partnered with SIBS to use prefabricated apartments, which use modular building approaches that reduce delivery timelines. This technology tackles the labor shortage trend, improves overall quality, and enables contractors to streamline their projects to meet tight timelines for giga-projects. The trends toward accepting new technology shows the industry is moving to a smarter and better construction process.

Tourism and Hospitality Infrastructure Development

In line with Vision 2030's objective of becoming a world-class destination, Saudi Arabia's tourism industry is propelling a boom in hospitality construction. By 2030, the nation wants to build 315,000 hotel rooms, with luxury resorts included in projects like the Red Sea Project. This trend is best illustrated by the Trojena winter sports resort in NEOM, which is expected to be completed in 2026 and combines innovative design with tourism. From upscale hotels to entertainment centers like Qiddiya, these developments call for specific construction knowledge. The emphasis on tourism infrastructure boosts the sector's growth and appeal on a global scale by providing contractors with a variety of opportunities.

Buy Full Report: https://www.imarcgroup.com/checkout?id=16893&method=1315

Saudi Arabia Construction Industry Segmentation:

The report has segmented the market into the following categories:

Analysis by Sector:

●Residential
●Commercial
●Industrial
●Infrastructure (Transportation)
●Energy and Utilities Construction

Regional Insights:

●Northern and Central Region
●Western Region
●Eastern Region
●Southern Region

Competitive Landscape:

The report provides a comprehensive analysis of the competitive landscape in the Saudi Arabia construction market with detailed profiles of all major companies, including:

●AFRAS
●AL Jazirah Engineers & Consultants
●Al Latifa Trading and Contracting
●Bechtel Corporation
●Fluor Corporation
●Gilbane Inc.
●Jacobs
●Tekfen Construction

Ask Analyst for Sample Report: https://www.imarcgroup.com/request?type=report&id=16893&flag=C

Future Outlook

Saudi Arabia's construction sector has a promising future because of Vision 2030's unwavering drive and commitment to innovation. Mega-projects like NEOM and Qiddiya will continue to anchor growth, even as investments in smart cities and renewable energy infrastructure establish the Kingdom as a global leader in construction. The emphasis on sustainability and technology, like BIM and modular construction, will boost efficiency and attract international expertise. Problems like labor shortages and fluctuating material costs require strategic solutions, such as talent development and supply chain resilience. With robust government support and a flourishing pipeline of projects, the industry is anticipated to thrive and transform the urban and economic landscape of the Kingdom through 2030 and beyond.

Research Methodology:

The report employs a comprehensive research methodology, combining primary and secondary data sources to validate findings. It includes market assessments, surveys, expert opinions, and data triangulation techniques to ensure accuracy and reliability.

Note: If you require specific details, data, or insights that are not currently included in the scope of this report, we are happy to accommodate your request. As part of our customization service, we will gather and provide the additional information you need, tailored to your specific requirements. Please let us know your exact needs, and we will ensure the report is updated accordingly to meet your expectations.

Contact Us:

IMARC Group

134 N 4th St. Brooklyn, NY 11249, USA

Email: sales@imarcgroup.com

Tel No:(D) +91 120 433 0800

United States: +1-631-791-1145

About Us:

IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

This release was published on openPR.